Categories

Under Florida law (Chapter 163, Part III), local governments are able to designate areas as Community Redevelopment Areas when certain conditions exist. CRAs are not overseen by the state, but redevelopment plans must be consistent with local government comprehensive plans.

Examples of conditions that can support the creation of a CRA include, but are not limited to:

The presence of substandard structures

A shortage of affordable housing

Inadequate infrastructure such as wastewater systems

Insufficient roadways

Inadequate parking

To document that the required conditions exist, the local government must survey the proposed redevelopment area and prepare a Finding of Necessity. If the Finding of Necessity determines that the required conditions exist, the local government may create a CRA to provide the tools needed to foster and support redevelopment of the targeted area.

Under Florida law (Chapter 163, Part III), local governments are able to designate areas as Community Redevelopment Areas when certain conditions exist. CRAs are not overseen by the state, but redevelopment plans must be consistent with local government comprehensive plans.

Examples of conditions that can support the creation of a CRA include, but are not limited to:

The presence of substandard structures

A shortage of affordable housing

Inadequate infrastructure such as wastewater systems

Insufficient roadways

Inadequate parking

To document that the required conditions exist, the local government must survey the proposed redevelopment area and prepare a Finding of Necessity. If the Finding of Necessity determines that the required conditions exist, the local government may create a CRA to provide the tools needed to foster and support redevelopment of the targeted area.

The activities and programs offered within a CRA are administered by the Community Redevelopment Agency. A 5- to 7-member CRA Board created by the local government (city) directs the agency. The board can be comprised of local government officials and/or other individuals appointed by the local government.

The Community Redevelopment Agency is responsible for developing and implementing the Community Redevelopment Plan that addresses the unique needs of the targeted area. The plan includes the overall goals for redevelopment in the area, as well as identifying the types of projects planned for the area.

Examples of traditional projects include:

Streetscapes and roadway improvements

Building renovations

New building construction

Flood control initiatives

Water and sewer improvements

Parking lots and garages

Neighborhood parks

Sidewalks

Street tree plantings

The plan can also include redevelopment incentives such as grants and loans for such things as façade improvements, signs, and structural improvements. The redevelopment plan is a living document that can be updated to meet the changing needs within the CRA; however, the boundaries of the CRA cannot be changed without starting the process from the beginning.

Tax increment financing is a unique tool available to cities and counties for redevelopment activities. It is used to leverage public funds to promote private sector activity in the targeted area. The dollar value of all real property in the CRA is determined as of a fixed date, also known as the base year. Taxing authorities, which contribute to the tax increment, continue to receive property tax revenues based on the base year.

These revenues are available for general government purposes. However, any tax revenues from increases in real property value, referred to as increment, are deposited into the CRA Trust Fund and dedicated to the redevelopment area.

It is important to note that property tax revenue collected by the School Board and any special district are not affected under the tax increment financing process. Further, unlike in some states, Florida taxing entities write a check to the CRA trust fund, after monies are received from the tax collector.

The tax increment revenues can be used immediately, saved for a particular project, or can be bonded to maximize the funds available. Any funds received from a tax increment financing area must be used for specific redevelopment purposes within the targeted area, and not for general government purposes.

A public meeting begins the designation process. Several steps will have to be accomplished before the CRA becomes a reality. These steps are briefly outlined below:

Adopt the Finding of Necessity. This will formally identify the blighted conditions within the targeted area and establish the area boundary.

Develop and adopt the Community Redevelopment Plan. The plan addresses the unique needs of the targeted area and includes the overall goals for redevelopment in the area, as well as identifying potential projects.

Create a Redevelopment Trust Fund. Establishment of the trust fund enables the CRA to direct the increase in real property tax revenues back into the targeted area.

CRAs are created to assist local governments in pursuing redevelopment in targeted areas that are characterized by blight and disinvestment. By establishing a CRA, the local governments are given a financial and planning mechanism by which to redevelop areas where private market forces aren't working.

No. A CRA does not levy taxes, it redistributes property tax payments that are already made to the city and county. It keeps a certain portion of the taxes within the CRA to be reinvested in specific redevelopment activities.